 Re: Dropshipping on ebay dead?
Hi OP, contrary to what the others have said I also feel that DS and selling on eBay is dead / almost dead! I have been in the e-Commerce industry for 10+ years this is what I think. E-Commerce is going fast downhill, is pretty horrible, and it really is not as good as it used to be.
Why do I say this?
1. There are WAY too many sellers. Thousands of sellers coming from China, Thailand, etc. with lower living costs so they are willing to sell anything just for a <$1 profit.
2. Because of the above, eBay nowadays is WAY too over-saturated and over-competitive compared to 5-10 years before. Anything you have thought about selling, someone else is already doing it at a fraction of the price. You can throw away any new ideas, and even if it IS profitable, the profits would be so low that it would be even create a realistic salary.
3. All of the saturation and competitive will weed out and create barriers of entry for any potential new sellers. The profit will be so low that it is not even worth it to sell there anymore.
4. Customers on eBay are basically 'junk yard' customers, they just want everything CHEAP. It's a waste of time even if you mention your product is 'high quality' because everything else is already doing that.
5. It's true, you could create and manage 1000+ listings in hopes that a some of them would sell for a profit. But think about it, it is even worth the time and money? Let's say you manage 1000 items full-time and your profit is only $2000 per month, which is highly possible considering all of the competition, then what's the point? The time costs will not even be worth it. You can earn more than that by working at any entry-level office job in US/Europe/much of Asia..
As a result, companies now have to sell more items then before, at a lower profit margin per item, just so that they can make the same amount of profit as previous years. this is not an ideal trend. This is happening on a wide scale and not just with e-eCommerce businesses. (Look at the P/L of Fast Retailing Co./Uniqlo, for example, im sure many have heard of them). Their revenues are increasing yet their net profits are the same, which means that their profit margin is DECREASING. ( This is BAD).
For the above reasons, I would advise everyone to jump ship and start looking for other work/business opportunities.
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